Converting Your Business To Natural Gas Think About Energy Briefing Steve Cook, Business Development Director UGI Utilities, Inc.
What Will We Cover Today • An Introduction to UGI • Why Switch to Natural Gas? • UGI’s Growth Initiatives • Successful Local Projects 1
Introduction To UGI
Our Service Territory 3
UGI Is A Leading Gas Utility In PA Total Gas Customers 613,000 UGI Penn Natural Gas 166,000 UGI Central Penn Gas 81,000 UGI Gas 366,000 Total UGI Electric Customers 62,000 • 89% Residential • 11% Industrial/Commercial • Total Annual Gas Sales: ~ 154 BCF (billion cubic feet) • Total Annual Electric Sales: ~ 970 GWH (millions of kilowatt hours) • UGI Utilities Gas Main Infrastructure: ~ 12,000 miles 4
Why Switch To Natural Gas?
Conversion Economics • Unique Situation o Oil prices remaining high o Gas prices at historic lows o Gas is an American/Pennsylvania fuel • Economics o Oil prices this past winter $3 to $4 per gallon (eq $21 to $29 per Mcf) o Natural gas prices (commodity & distribution) $8 to $11 per mcf 6
Get A Personalized Estimate Using Our Fuel Cost Comparison Calculator 7
Your Utility Contact Is Important • Utility Consultation Includes: o Infrastructure at the site Is the infrastructure able to support the load and pressure/volume? Do facilities need to be upgraded? o Applicable tariff rate o UGI to provide cost analysis based on historic oil consumption o Work with Consulting Engineers Permitting required – Environmental/PADOT o Coordinate Utility Project Requirements with HVAC Contractor 8
Growth Initiatives
UGI Creates Benefits • Converted government facilities and schools to clean-burning gas within the last five years • ~ 15 government facilities • ~ 20 schools • Nine UGI customers installed combined heat and power systems within the last five years • Carbon savings of nearly 72,000 tons of CO2 • Since 2008 UGI converted over 31,500 households and 45 large C&I facilities, and invested over $40 million annually to extend service to new customers • In 2014, the 31,500 households that converted to natural gas will save approximately $47,250,000!!! • Overall carbon savings equivalent to removing 55,000 cars from the road 10
GET Gas Program • The UGI Growth Extension Tariff(GET) is designed to provide natural gas service to unserved or underserved area • Available as a 5-year pilot to customers of UGI Utilities • GET Gas customers will pay a monthly surcharge over a 10-year-period to cover the cost of the main extension • UGI designates an additional $15 million each year for five years for this program Visit www.ugi.com/getgas 11
Successful Local Projects
Panelist: Fort Indiantown Gap Located in Annville, Lebanon County, Fort Indiantown Gap is the primary training site for the Pennsylvania National Guard. It is also home of the Pennsylvania Department of Military & Veterans Affairs. The site offers more than 17,000 acres and 140 state-of-the-art training areas for military forces, law enforcement agents and civilians from across the nation. FITG is always looking for ways to better serve our citizen-soldiers, as evidenced by the ongoing facility renovations and construction. • Project Type: Oil/Propane to Natural Gas Conversion o Initial evaluation over 10 years ago / Project started in 2010 and is ongoing • Project Highlights: o More than 80,000 feet of HDPE main installed to date o More than 300 services to existing and new buildings installed to date • Results: o About 1/3 reduction in energy cost o Replaced the use of more than 1.2 million gallons of oil with natural gas 13
Panelist: Fort Indiantown Gap 14
Panelist: Shady Maple The Shady Maple Complex consists of: The Farm Market, the Gift Shop, the Smorgasbord, and the Banquet Center. Shady Maple also owns Shady Maple RV located at the corner of Division Highway and Ewell Road in East Earl Township. • Project Type: Propane to Natural Gas Conversion o Initial evaluation over 15 years ago o Project completed August 29, 2012 • Project Highlights: o UGI Established a New Take Station with Columbia Transmission 1,200 Feet of 8 Inch HDPE Installed • Results: o Prior to August 2012, Shady Maple burned approximately 280,000 gallons of propane o UGI served Shady Maple Maintenance Garage in 2013 and Shady Maple RV Center in 2014 15
Shady Maple Map Blue Ball Shady Maple Elementary Farm Market Shady Maple Shady Maple Smorgasbord Maintenance Garage East Earl Township Shady Maple RV Center New UGI Take Station 16
Panelist: ACE Solutions Advanced Clean Energy Solutions works with clients from concept to completion on the conversion of fleets from refined fuels to CNG. ACE Solutions designed, constructed and operates CNG of New Holland, LLC. • Project Type: First CNG Station in Lancaster County o Public Retail Fast-Fill Station located at 251 Commerce Drive, New Holland • Project Highlights: o Fast fill with a rate of 5GGE (gasoline gallon equivalent) per minute Two 250hp CNG compressors CNG Storage 24 Key card access • Results: o Reduces carbon dioxide (CO 2 ) emissions o Generally between 30 and 60% cheaper than gasoline 17
CNG of New Holland, LLC Tyson Foods New Holland North America CNG of New Holland, LLC 18
Tools For Businesses • Fuel Cost Comparison Calculator o Compare fuel costs for your business www.ugi.com/businesscalculator • Check for Natural Gas Availability o Find out if natural gas is available to your business www.ugi.com/gasavailability • Business Energy Advisor o Get energy savings advice specific to your industry and type of use www.ugi.com/energyadvisor • Our Blog, UGI Connection o Read real life examples from other businesses who have made the switch http://blog.ugi.com 19
Thank You Steve Cook Business Development Director UGI Utilities scook@ugi.com 717-255-1461 20
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